Ground services lift FedEx

FedEx says its ground-freight business has helped to offset losses following the September 11 terror attacks. The company reports that second-quarter earnings will top most forecasts because of growth at FedEx Ground.

“We believe that FedEx Ground package volume will grow (about)nine per cent and that yields will increase about six per cent, similar to first- quarter growth rates,” said FedEx chief financial officer Alan Graf said in a Reuters report.

But in its first detailed disclosure of how the attacks have affected its business, FedEx said second-quarter United States air-express shipments were likely to be down 11 per cent from a year earlier, and International express would fall about 5 per cent.